Question

Determine whether this person or group is unemployed and what type of unemployment it is.

Jim lost his sales job at the Mercedes dealership because times were tough and people could no longer afford luxury cars.

Jim is ______________ unemployed.

Answer 1

Jim is cyclically unemployed, which occurs during economic downturns when demand decreases, and businesses lay off workers, leading to higher unemployment rates.

Step-by-step explanation:

Jim lost his sales job at the Mercedes dealership because times were tough and people could no longer afford luxury cars. This situation indicates that Jim is cyclically unemployed. Cyclical unemployment occurs when there is a downturn in the business cycle, leading to a general decline in demand for goods and services. As a result, businesses may lay off workers because they are selling less product. This type of unemployment is often associated with economic recessions or depressions which lead to higher joblessness, compounding the financial stress and mental health effects on those impacted.